Minutes before the Vermont House voted 99 – 39 in support of H.289, the bill that changes the Renewable Energy Standard to require more wind and solar to be built in Vermont, Rep. Marc Mihaly of Calais told the body,
“The SEA Group which did a lot of the modeling relied upon here calculated the financial benefits to Vermonters and they’re nearly double the costs.”
Rep. Mihaly’s statement was especially influential because he was lauded as an “expert” by House Appropriations Chair Diane Lanpher during that committee’s discussion of the costs associated with the bill.
I was taken aback by Rep. Mihaly’s claim, because I was a member of the Department of Public Service’s Renewable Energy Standard Stakeholder Advisory Group which heard directly from SEA Group when they presented the report* on their modeling.
At no time did SEA Group calculate that the financial benefits to Vermonters are nearly double the costs.
What SEA Group determined was that
· All scenarios modeled increase financial costs to Vermonters. GHG benefits are excluded because Vermont does not have polluting power plants to reduce emissions. Price suppression benefits are regional and Vermont gets only 4% of those benefits.
· Benefits were almost entirely societal and regional, not specific to Vermont.
· The only cost benefit shown by SEA Group was potential price suppression regionally. Vermont was credited with 4%.
As a member of the DPS RES SAG, my takeaway from the report on the modeling was that emissions reduction benefits were overestimated and environmental costs were underestimated. No land use impacts specific to Vermont were included in the model’s environmental costs.
Impact to ratepayers is the jurisdiction of House Environment & Energy, which got competing memos from Renewable Energy Vermont and DPS on Feb. 6, the day the bill was voted out of committee. Those memos about costs to ratepayers were never discussed in committee prior to the vote.
Two money committees, House Ways & Means and House Appropriations, took testimony on the costs and benefits to the state from Joint Fiscal Office’s Joyce Manchester, who wrote three different versions of the Fiscal Note on which legislators rely.
At no time did either committee hear directly from Department of Public Service Energy Planner TJ Poor. He waited in the committee room in House Ways & Means, prepared to testify. He was never asked by Chair Emily Kornheiser to provide information. JFO’s Joyce Manchester provided her first Fiscal Note to House Ways & Means, then revised it a week later and presented it to the committee before they voted the bill out.
JFO’s third Fiscal Note was presented to House Appropriations. In response to questioning, JFO’s Joyce Manchester said she prepared the updated note in consultation with Regulatory Assistance Project. RAP’s principle Richard Cowart is partners with Rep. Mihaly in a group net metering system in Calais where they both live. In committee, Rep. Mihaly was seen winking at the renewable energy lobbyists prior to presenting his glowing support of the legislation.
Totally missing from the discussion in all three House committees, except for this author’s invited testimony, are the land use impacts from doubling the Tier 2 in-state renewable requirement. The effect, according to SEA Group, REV and DPS, is a nearly 3-fold increase in lands necessary to build all those required new renewables. Business as Usual (BAU) is about 800 acres while REV and DPS testified in House Environment and Energy that the proposed RES would increase that to 2200 to 2400 acres.
In recent years, the Fish & Wildlife Commissioner testified that their program for reviews of Act 250 and Section 248 applications is underfunded. JFO did not include an increase in state staffing necessary to review the increased land use impacts that this RES will require. The money committees in the House charged with reviewing impacts to state government never heard about the needs of the Fish & Wildlife Department. Testimony this year in House Environment & Energy on the Act 250 bill by the person who does those reviews now was that he is overwhelmed with work.
Fiscal responsibility, or the lack of it by House leadership and members, is causing tremendous financial harm to Vermonters. This is not the time to be hastily putting in place a bill that will benefit in-state developers in the short term and out-of-state investment banks to whom almost all of Vermont’s renewable energy projects are sold in the long term.
This commentary is offered with all due respect to our legislators who believe they are doing good but in this case, they are failing the people of Vermont who can least afford to pay more for electricity. If legislators want to see more people pushed over the tipping point and into the streets and woods by higher monthly bills, they could find no better vehicle for increasing the unhoused population than by passing this RES update.
by Annette Smith, Executive Director, Vermonters for a Clean Environment